Steel, steel item imports may go up on easing rules

KOLKATA: Domestic steel makers are expecting a surge in import of steel and steel items in the country after the government eased import norms for the two products. The Directorate General of Foreign Trade ( DGFT) has allowed steel exporters to India to provide quality certification from “any international standard certifying body,” toning down its earlier policy that mandated certification from only a recognised body in the product’s country of origin.

“While subdued demand at home has made us look at exports, a rise in imports will once again disturb the demand-supply balance,” a senior executive at a leading steel maker said, requesting anonymity.

The move may benefit auto and consumer durables makers, who use higher amounts of flat steel products that are imported into the country.

The amendment to the import norms follows an August 2013 DGFT notification granting exemption to import of steel and steel products from the applicability of Steel and Steel Products (Quality Control) Second Order, 2012. While the August notification had evoked a strong reaction from Indian steel makers, this time, companies have refrained from commenting on the easing of import norms.

“Quality certification should be either from aproduct certification body as per applicable international standard or the quality certification bodies such as the International Association of Classification Societies or European Union or Central Boiler Board of India,” the notification issued on Thursday said.

India mainly imports steel items from China, Japan, South Korea, the US and Europe.

In 2012-13 , steel imports touched 7.9 million tonne. However, imports of total finished steel declined almost 28% year-on-year in April-November 2013 to 3.65 mt, according to the steel ministry’s Joint Plant Committee.

India has been a net importer of steel for the last 3-4 years. With demand anticipated to cross 230 mt by 2025 and new steelmaking capacities getting delayed, the country’s steel imports are poised to rise 7 to 8 times to around 50 mt.